More than 200 jobs would be cut under LePage's proposed budget

Saturday

Jan 12, 2013 at 2:00 AM

AUGUSTA, Maine — Gov. Paul LePage's administration on Friday presented a proposed $6.3 billion budget that eliminates more than 200 state positions, seeks to share the state's teacher retirement costs with local school districts, and makes changes in the state welfare system to address an expected $40 million reduction in federal matching funds.

GLENN ADAMS

AUGUSTA, Maine — Gov. Paul LePage's administration on Friday presented a proposed $6.3 billion budget that eliminates more than 200 state positions, seeks to share the state's teacher retirement costs with local school districts, and makes changes in the state welfare system to address an expected $40 million reduction in federal matching funds.

While the Republican governor said his two-year budget takes steps toward "rightsizing state government" amid "challenging and difficult times," Democrats and teachers were quick to pounce on portions they see as a tax shift from state to local taxpayers.

"This budget is a giant shell game. It shifts the cost and the burden to towns and local school districts, hurting middle class homeowners," said Lois Kilby-Chesley, teacher and president of the Maine Education Association.

LePage did not appear at the State House budget briefing, but he released a statement saying his spending plan "balances priorities for the people of Maine by maintaining the crucial safety net for our most vulnerable while holding the line on our already too high tax burden." The budget, which covers the fiscal cycle starting July 1, now faces legislative review in the months ahead.

It seeks to increase property tax breaks for older Mainers in two programs, and temporarily suspend municipal revenue sharing. It also proposes rollbacks in some social programs, such as discontinuing state-funded cash assistance for legal non-citizens who are not entitled to Social Security Income benefits. The budget seeks to maintain funding for state colleges and universities, a provision that pleased University of Maine System Chancellor James Page.

"The appropriation levels recommended by Governor LePage, if approved by the Legislature, position the University of Maine System to again freeze tuition, this time for each of the two next academic years," Page said in a statement.

The budget, just a under $6.3 billion, is slightly larger than the current budget, which now stands at $6.1 billion. Eighty percent of the total is consumed by two departments — Education and Health and Human Services — with Education accounting for 45 percent and Human Services taking 35 percent. Of the 200 state positions targeted for elimination, more than half are in the Transportation Department.

During a briefing for legislative leaders and reporters, Finance Commissioner Sawin Millett, who's been in state government or close to it for several decades, called the proposal "one of the more difficult budgets I've dealt with."

"The difference here today is we don't have those low-hanging fruit options. ... We're basically out of the easy-button options," said the commissioner, who faced a volley of questions from legislative leaders. While the easy options are gone, administration officials also are faced with diminishing federal stimulus money and increased use of human services programs by people already enrolled in them.

Senate President Justin Alfond was focused on what he estimated would be a tax shift of about $400 million to local communities.

"That is obviously a concern to all of us around the table because we all come here representing our communities, and that's a tremendous amount of money to be taking from them in this budget," the Portland Democrat said.

Republican lawmakers acknowledged the budget would force painful choices, but they claimed it would protect the disabled and elderly as well as make investments to move the economy forward.

"I appreciate that you are bringing forward a budget that does not include a tax increase," House GOP Leader Ken Fredette of Newport told Millett.

Legislators' immediate challenge will be revising the spending outline for the fiscal year that will end June 30. The supplemental budget accounts for nearly $90 million in extra obligations for Medicaid, shrinking federal matches for social programs and revenue estimates showing $35.5 million less than anticipated due to the sluggish economy.

To balance the books, budget writers scaled back existing programs, delayed school funding payments from June to July, and made other income saving changes.

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